Digital bank Tandem has announced its third consecutive year of profitability in the 2024 financial year.
The fintech firm, which identifies itself as "the 海角视频's greener digital bank", saw a 40 per cent surge in underlying profit to £24.1m, up from £17.2m in 2023, as reported by .
By the end of 2024, Tandem's assets under management had exceeded £1.5bn, marking a 5.2 per cent increase on the previous year.
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Revenue rose by nine per cent to £98.7m, with green lending also increasing by nine per cent to £572m, accounting for 38 per cent of its total loan book.
Operating expenses remained relatively stable at £64.5m, a slight increase from £63.7m in 2023. However, the bank's net interest income fell to £86m, down from £89m.
Many lenders enjoyed the benefits of high interest rates in the previous reporting period, which peaked at a post-financial crisis high of 5.25 per cent in 2024.
But as the Bank of England reduced rates to 4.5 per cent – where they currently stand – lenders have felt the pinch on income.
Tandem expanded its motor finance and home lending divisions in 2023, offering consumers its "green offering."
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These loans are "designed to help homeowners and car buyers transition to a greener lower carbon lifestyle."
In 2024, the bank achieved £160m of new motor finance lending and £114m in home lending.
Alex Mollart, CEO at Tandem, stated: "We knew 2024 was going to be an important year for Tandem and we've worked incredibly hard to get the bank to a place where we're now posting our first statutory profit.
"We've done it whilst delivering new and innovative green products to help build a greener digital bank that empowers the transition to a lower carbon lifestyle and helps save money along the way.
"Our mission is to make it easier for people to choose a greener lifestyle. It sounds simple, but as products and services get more expensive, environmental rules and regulations get more complex and banks offer increasingly limited services on old tech. What Tandem is doing is, in my view, quietly revolutionary."